RM’s are Insured by HUD, therefore the HUDguidelines......for at least the first 180 days, the property must sell for 95% of appraisal for the lender to be reimbursed by HUD....24 CFR 206.125Typically, the lender will order an appraisal prior to listing the property for sale.  

The Profit you will have is not necessarily 2k a month what about fixes, insurance, utilities, trash, and just pesky little repairs? 

What if you inform tenants that your insurance co requires all persons residing there to list make and model of  their cars.

Depending on the state, foreclosure proceedings require original/recorded note/mortgage documents.

After taking into account property taxes, utilities, water, insurance, and a 10% repairs & capEx fund, I figure he's making ~$5,000/month. 

If any member ever has a question about insurance claims or a closing, do not hesitate to reach out.Daniel Alvarez

You will survive. good underwriter looking at your tax returns will see you own the debt and the asset.. probably gets bounced.. this is what HML did pre 08 all of our loans went to buy and hold folks and we did rate and term refi.. but we were a true third party lender .. its was a great gig while it lasted my average turn on my loans was 92 days.. and the buyers not only had no money in the deal they got refi proceeds usually 5 to 8k a house and they would do 4 and a time.. now they were suppose to take the refi proceeds and put them in their reserve account.. but alas the reserve account ended up having Jets skis in them instead maybe a new car.. or that trip they wanted to take.. etc etc.. anything but where it was suppose to go.. 

That will hit your cash flow over $200/mo.Next, I do not see a line for insurance. 

That is why you have to trace the interest on where it is used.3) If you have another trade or business and deposit the money in the business account, there is an exception on not having to trace the interest if you have used the proceeds within 30 days.

I would wait until you have at least 20 % down payment before purchasing another property, unless your main day job can help cushion the expense cost (vacancy, repairs, taxes, insurance etc).